Matterport(US:MTTR)2023-08-08 23:45Financial Data and Key Metrics Changes - Total revenue for Q2 2023 grew to nearly $40 million, reflecting a 39% year-over-year increase, reaching the high end of guidance [26] - Subscription revenue rose to $20.9 million, up 13% from the previous year, also at the high end of guidance [26] - Non-GAAP net loss for Q2 was $21.5 million, with a loss per share of $0.07, marking a 42% improvement from the year-ago quarter [41] Business Line Data and Key Metrics Changes - Subscription and services revenue both achieved new records in Q2, with subscription revenue contributing significantly to total revenue growth [26][37] - Services revenue reached $10.7 million, more than double the year-ago period, driven by capture services and add-on services [37] - Product revenue was $8 million, up 58% from the previous year, primarily due to demand for the new Pro3 camera [37] Market Data and Key Metrics Changes - The U.S. residential real estate market saw an 18% decline in existing home sales volume in Q2, yet Matterport added nearly 660,000 new digital twins, mostly related to residential real estate [18][20] - Approximately 50% of subscription revenues came from non-real estate customers, with strong growth in construction, travel, hospitality, facilities management, and insurance [27] Company Strategy and Development Direction - The company is focusing on AI-driven technologies and has introduced initiatives like Genesis to enhance its digital twin platform [7][79] - Strategic partnerships with major software providers like AWS and Autodesk are expanding Matterport's market presence and driving revenue growth [14][85] - A restructuring initiative aims to accelerate the path to profitability, with expectations to achieve operating cash flow breakeven by 2024 [31][80] Management's Comments on Operating Environment and Future Outlook - Management noted that the digital transformation of the built world is ongoing, with Matterport positioned to deliver cost savings and operational efficiency [43] - The company anticipates a 17% increase in U.S. existing home sales volume next year if inflation and interest rates improve, positioning itself for growth [25] - Management expressed confidence in the company's ability to drive growth despite challenges in the residential real estate market [62] Other Important Information - The company ended Q2 with $446 million in cash and investments, remaining debt-free [42] - Annual recurring revenue grew to $83.5 million, with a subscriber base of 827,000, including 69,000 paid subscribers [36] Q&A Session Summary Question: Customer reception to pricing changes - Management reported positive feedback on pricing changes, with retention rates better than expected and an increase in customers converting to annual plans [64][65] Question: Impact of the U.S. residential market on revenue - Management acknowledged the influence of the U.S. residential real estate market on services and product revenue, reflecting modest adjustments in guidance [95] Question: Long-term monetization of proprietary data - Management discussed plans to unlock the value of proprietary data through new products like Property Intelligence and the Genesis initiative, which will enhance the digital twin platform [82][83]